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Yes I believe it does. But you DO NOT want to over do it. I think between 3%-5% keyword density is ideal. I use to get away with 6-8% but now with the new Google updates that is too high. I never go above 5% now.

No doubt its keyword density matters, keeping an appropriate percent around 2-3 for your article is important. Over doing it is considered to be the keyword stuffing which is a black hat activity and considered to be a spam activity and can affect your site ranking later on after the Google Updates so keyword density does matter so choose and work with it wisely.

Yes definitely,The preferred keyword density rate varies from search engine to search engine. In general, it is recommended using a keyword density rate in the range of 1-3%. Too much keyword density can cause your site to be tagged as spam.

If we talk about in simple terms, keyword density counts in percentage and expressed as the ratio of no. of times keyword used to total no. of words in your content. It's appreciable to use it between 2% to 3%. Otherwise it could be considered as keyword stuffing by Google.